It was an interesting day on Wall Street on Wednesday. There’s rarely a day with such negative technicals, and the market closing next to high. It was up at one point, but still, it was negative technicals all day. Advance-declines were 3 to 1 on New York Stock Exchange, and the up/down volume about 2 1/2-3 to 1 on NYSE. It looked like a distribution day. We’ll see what happens. In the meantime, we’ll going over some longs and a few shorts.
Endocyte, Inc. (ECYT) had a significant price-volume surge. This stock was up 58%, or 2.17, on 12 million shares. It did have a plunge back in December, it based out for the last couple months, and when it had a breakout again, it went up sharply. The next level of resistance is up around 7 1/2-3/4, which is the next target.
ChipMOS Technologies (IMOS) has made a monster move. Its beautiful base was broken, and we’ve been pointing this out since January when it was at 6 1/2. It continues to run, consolidate, spike, flag, and snapback with a vengeance, going from 10.70 to nearly 17, just in the last week, or 6 - 7 sessions. At this point, at the top of the channel, look for some pullback and consolidation, particularly if the market’s vulnerable. Don’t be in a rush to sell it if you have this stock. Wait for a definitive turndown and play with stops.
RADVision Ltd. (RVSN) had a key move in the last three sessions, but on Wednesday, it broke out across a little bit of a resistance zone, then spiked up 1.23 to 11.20, or 12.3%, on 764,000 shares traded. It doesn’t sound like a lot, but it’s a thin stock, and that’s the biggest volume traded since December. At this point, the next target should be up around 12 1/4 short-term.
Deckers Outdoor Corp. (DECK) broke a major support level, and extended the down channel. A big breakdown followed since then, and a 5-day, week long flag. It has terrible technicals. It looks like, if it gets another leg down, that could take it down to 60, or worse. Decker is one to watch on the short side.
Alaska Air Group, Inc. (ALK) broke the uptrend with a sharp move to the downside. It popped to resistance, backed off, and tried it again, and backed off 78 cents on Wednesday. The overall pattern, with this break, looks like a bear flag. Watch for this stock to take out 67.35, and if it does, look for something around 61.
Other stocks in our Charts for the Day are Level 3 Communications, Inc. Co (LVLT), Halozyme Therapeutics (HALO), LSI Corporation (LSI), NXP Semiconductors (NXPI) , Endologix Inc. (ELGX), Solazyme, Inc. (SZYM), Multimedia Games Holding Co (MGAM), Federal Signal Corporation (FSS), AVI BioPharma, Inc. (AVII), Guidewire Software, Inc. (GWRE), NetQin Mobile Inc. (NQ), Threshold Pharmaceuticals, Inc. (THLD). The Boxer Shorts include Watson Pharmaceuticals, Inc. Co (WPI), American Public Education, Inc. (APEI), WebMD Health Corp (WBMD), Chunghwa Telecom (CHT).